Camarillo City Council
AGENDA REPORT
Date: June 26, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Dave Klotzle, Public Works Director
Subject: Water Testing & Analysis - Award of Agreement
BACKGROUND
Water quality testing and analysis of the City of Camarillo (City) potable water, recycled water, and desalter water systems is required by the California State Water Resources Control Board – Division of Drinking Water (DDW) and the Environmental Protection Agency. The City does not have the facilities or laboratory certifications necessary to perform the analytical tests required to meet state regulations. Therefore, the City contracts with a certified laboratory to perform the testing services. The current agreement is set to expire on June 30, 2024.
DISCUSSION
On April 19, 2024, staff advertised a Notice Inviting Bids (NIB) in the VC Star and posted on the City of Camarillo PlanetBids portal Specification No. AT-2024-4 to provide water testing and analysis for potable, recycled, and desalter water, for a three-year term starting July 1, 2024.
On May 10, 2024, staff received three bids uploaded to the City of Camarillo PlanetBids portal as shown in the table below.
Name of Bidder Dollar Amount of Bid
Weck Laboratories, Inc., Industry, CA $596,387
Eurofins Eaton Analytical, LLC, Pomona, CA $466,971 (non-responsive) Fruit Growers Laboratory, Inc., Santa Paula, CA $588,074 (non-responsive)
Water Testing & Analysis - Award of Agreement
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Although Eurofins Eaton Analytical, Inc. (Eurofins) submitted a bid proposal with the lowest price, their bid was submitted with proposed contract exceptions that if agreed to, would change the terms and conditions of the agreement, and create an unfair advantage to them in their pricing. The exceptions noted also made the City unable to fairly review their Bid Proposal without allowing Eurofins to re-negotiate its terms. Therefore, as further detailed below, Eurofins’ bid proposal is not responsive and should be rejected.
While the NIB included a place for bidders to enter “Exceptions,” the intent was not to allow modifications that change the basic terms of the City’s Bid request such that a fair review of bids cannot be undertaken. A Bidder should use the Question-and-Answer section of Planet Bids prior to the bid deadline for major change requests to permit the City to review and respond to requested modifications. In addition, the Bid Conditions Section 10.A states that the Bidder shall agree to the specifications, and failure to agree to all the specifications could be cause for rejection of bids. In Eurofins case, they submitted a bid with exceptions that were contrary to the bid specifications, again making their bid proposal subject to rejection.
Of importance, Eurofins submitted changes to the term and pricing. The NIB requested firm pricing for each year of the three-year agreement with no pricing adjustments during the agreement term. Eurofins instead submitted two pricing options, one for each year for three years and also then proposed changing the agreement term to one year with a Consumer Price Index increase. Eurofins also proposed to add a limitation of liability and changes to the insurance requirements. This change is contrary to Section 2 of the NIB stating that the firm selected will be required to comply with the City’s insurance requirements.
The second lowest bidder, Fruit Growers Laboratory, Inc. (FGL) failed to submit documentation required in the Bid Conditions Sections 2.A, 2.B, 2.C, 2.D and 2.F, and Bid Conditions page 5. The bidding instructions stated that all items listed in Bid Conditions Sections 2.A through F, as well as company information and signature on page 5 of the Bid Conditions, must be submitted for the bid to be considered complete.
Therefore, FGL’s bid proposal is non-responsive.
The City sent the attached letters to Eurofins and FGL informing them of their proposal deficiencies and that their bid proposals are non-responsive. A response letter from Eurofins is attached as well.
Staff has evaluated the remaining bid submitted by Weck Laboratories, Inc (Weck). Weck currently provides water testing and analysis services for the City, meets all City requirements and agreed to all bid terms and was fully responsive.
For the reasons stated above, staff recommends that City Council approve the three-year agreement with Weck for water testing and analysis in the amount of $596,387, with a contingency in the amount of $59,650 (approximately 10%) for unforeseen additional testing, for a total expenditure authorization of $656,037, as shown in the table below:
Water Testing & Analysis - Award of Agreement
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Fiscal Year Amount
2024/25 $195,738.00
2025/26 $196,418.22
2026/27 $204,230.78
Total Three-Year Agreement Amount $596,387.00
10% Contingency $59,650.00
Total Authorized Expenditure $656,037.00
FISCAL IMPACT
Funds for the Agreement for Water Testing and Analysis are included in the FY 2024/25 Proposed Budget, Water Utility Fund, Chemical Testing and Analysis Account Nos. 860- 3610-436.34-01 in the amount of $47,540, 861-3650-436.34-01 in the amount of $43,998, and 860-3670-436.34-01 in the amount of $104,200.
CEQA DETERMINATIONS
City staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that Water Testing and Analysis is not subject to CEQA review because it can be seen with certainty that there is no possibility that the Water Testing & Analysis may have a significant effect on the environment. The activity of services is limited to water testing and analysis.
RECOMMENDATION
1. Find the Water Testing and Analysis Agreement is exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines; and
2. Reject bids submitted by Eurofins Eaton Analytical, Inc. and Fruit Growers Laboratory, Inc. as non-responsive; and
3. Authorize the City Manager to execute Agreement No. 2024-128 with Weck Laboratories, Inc., for an amount of $596,387 with a contingency amount of $59,650, for a total agreement authorization of $656,037, and,
4. Authorize the City Manager to execute future amendments to the Agreement for Water Testing and Analysis with Weck Laboratories for unforeseen additional testing, up to the authorized contingency amount.
ATTACHMENTS
Water Testing & Analysis - Award of Agreement
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1. Agreement No. 2024-128
2. Eurofins Eaton Analytical, Inc. Non-Responsive Notification Letter
3. Fruit Growers Laboratory, Inc. Non-Responsive Notification Letter
4. Eurofins Eaton Analytical, Inc. Response Letter to City of Camarillo
5. Eurofins Eaton Analytical, Inc. City Response Letter REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None